How to Get Ready for the Junk Rally

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I have to say I’m relieved stocks didn’t rip higher yesterday – it gives the bulls a bit more runway. But the real question at this point is: What kind of bulls are left to drive this next leg?

We’re going to dig into that in a moment.

Right now, my main focus is locking in gains and managing risk. I’m still open to new long setups, but I’m approaching them with more agility than before. This stage of the rally is no time for lazy positioning.

What’s striking is that even fresh tariff chatter couldn’t shake the market. That’s a clear sign of how structurally bullish the current setup is. In this kind of tape, dips remain buyable.

But this is really important to keep in mind: leadership is shifting. Materials have already taken the lead, and now energy’s starting to follow.

That rotation is a red flag.

It suggests we’re closer to the end of this move than the beginning. If you’re still chasing, make sure you’re not the one left holding the bag when the music stops.

Let’s look at how we can do just that…

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